Will Google Take On Xbox Live?

Google's $23 million deal to acquire Adscape-first reported by Red Herring last week-gives the search giant a patent that could mean trouble for Microsoft's Xbox Live online gaming service.

Ownership of Adscape gives Google access to a patent portfolio that could position the company well in a battle against Microsoft to deliver advertisements in video games. Redmond became the king of in-game ads after buying New York-based Massive in 2006 for an estimated $200 to $400 million (see Microsoft's Massive Purchase).

The most interesting patent, however, could create some headaches for Microsoft's Xbox Live effort to fuse console gaming with online gameplay. Google's new intellectual property includes a patent granted to San Francisco-based Adscape-then called BiDamic-in 2005 for a "system and method for interactive on-line gaming."

I'm by no means a "intellectual property attorney" but when reading this article it sounded like less substance and more speculation about a "fight" M$ "could" have in the future. Maybe its my lack of understanding about how "intellectual property" is defined under the law but from a normal business point of view I don't understand why Google and M$ can't co-exist/compete in the same business, I mean as long as M$ continues advertising and putting games and content that is "licensed" legally from other companies what does that have to do with Google??? It almost sounds as if they are saying Google owns the rights to the internet -lol....I guess we'll see if there's "really" a story here.

"BiDamic filed the application in September of 2002, mere months before the launch of Xbox Live."

Nothing makes me more angry than these stupid companies that go around, hear an idea, and scramble to patent it before anyone else does, so they can sue for money later. The company probably wasn't big enough to sue Microsoft back then, but now that Google owns it, who knows.

I can understand the need for some patents, but when it goes crazy like this (as it is all over the place, not just the video game industry) it kills the free market, it kills competition, and it kills new ideas. If Google sues Microsoft over this, then I've had it with them...

1st off they would be better of with a partnership. But all this lets sue M$ crap is getting old. It just like How people on this site report you for being truthful just look at my bubbles. I got bum rushed and reported. Oh well this is how it goes when you are too open.

This story is kind of lame. It seems more like the media is trying to give hype to Goggle to take on Microsoft. Goggle has a long way to go before it takes on XBL not only that they have to deal with Nintendo and Sony's online base.

just hope they join sony and take on microsoft so that sony's online would be great.

nicodemus microsoft does this all the time, they quickly bought patiets and destroyed so many small companies in the past, they also bankrupted, blackmailed and threatend to kill company member's families, in order to get what they wanted.